Whether the click-through rate is good or good enough is fairly common. Unfortunately, there is no single answer to this question.
Metrics such as CTR may vary depending on the industry, keywords, and many other factors. It is dynamic and changes, triggered by many different parameters, from budget to bids, auctions, and strategies of competitors in the market. However, the type of ad campaign also affects CTR. For example, the average CTR for display ads which is campaign creation Google Ads on a website, is different from the average CTR for search ads.
You will learn 3 main issues about click-through rates in this article:
- What Is A Good CTR?
- Interpreting A Good CTR
- What Factors Affect A Good CTR?
Interpreting A Good Click-Through Rate
To understand what a good click-through rate is, it is important to know the average rate in the market for the type of ad. The best way to understand this is to calculate our CTR and compare it with similar ads. If this ratio is above average, the business has a good CTR. For example, 2% is the average for an entire account across all verticals. This means some campaigns inside the account could be performing better, and some could be performing worse. Anything higher than 2% is above average.
The average click-through rate, on the other hand, is calculated by dividing the total CTR of all online ads from a business by the total number of ads. It provides an overview of the campaign performance analysis of all online ads.
What Factors Affect A Good Click-Through Rate?
Relevance, ad rank, and device used are among the most important factors affecting CTR.
The content must be relevant to what the business offers, keywords, headlines, descriptions, and the landing page. Keywords and ad text should target the right audience and send the right message. Irrelevant keywords will target the wrong audience. While ad relevance is an important factor affecting CTR, it is also very important for bounce rate and conversion.
On which page, where, and how will the ad be displayed in Google Ads? That is, factors such as ad rank and ad space effect CTR. Ad rank is determined by multiplying the CPC bid by the quality score. Ad rank deals with quality score and the amount the business is willing to bid against competitors, i.e., the CPC budget, as well as relevance and competitors’ strategies. The better an ad is placed and visible, the more likely it is to be clicked. If the order of positioning the ad on the screen goes below the screen, it may cause a decrease in the likelihood of the ad being displayed and the click-through rate.
The user’s device can affect the CTR across all channels. Generally, CTR from a mobile device is higher than on a desktop because consumers rely heavily on their smartphones.
This is a metric that measures impressions that are only visible to an internet user. This means that an ad becomes viewable on the user’s screen. Generally, being at the top of the first page in Google Ads means increasing Google Ads optimization, for example, Search ads, is good for views. If the user has to scroll down or switch to another page to see the ad, this means that the ad is below the fold and is not viewable until the consumer scrolls down the page. However, each platform has a different measure of viewability when it comes to videos. For example, three seconds or more counts for Facebook, Instagram, and Twitter. On the other hand, YouTube calls it viewable after at least 30 seconds have been watched or less if the video is shorter.
The industry also determines the click-through rate, especially considering the competition.
It’s important to note that a high CTR does not necessarily mean that your advertising campaign is successful. A high CTR is just one factor to consider when evaluating the success of your advertising campaign. You should also consider other metrics, such as conversions, cost-per-conversion, and return on investment (ROI).
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